Thanks for all the responses, and the offer of a sway bar. If indeed the subframe must be dropped to replace the sway bar, I will wait until it breaks (which I don't think is imminent).
I am moving out of a 1989 124/300e sedan, (207k miles) . I had replaced the shocks/struts, many suspension links, and that car was tight and fun to drive, a rather sporty sedan. ..... I just moved into a clean 1995 124/E320 wagon (135k miles). This car 'floats' so much more than the previous car, floats like a boat. I feel the body wallow around. WHile the mechanic, a knowledgeable friend, was mounting tires for me, he commented that the shocks were good because there was no leakage, and that the handling problems I felt were caused by the sway bar. That led me to check with you all, the crew, and your responses confirm my gut feelings. Sounds like I should go with the basics; Put on good tires, replace the front shocks, do a wheel alingment and brakes and we are good to go.
The rear shocks are just beginning to leak on one side.
By the way, should I expect the wagon to be as stiff, and as sporty as the older 300e sedan, or were the wagons by nature softer in ride?
And what would you suggest for front shocks (I know this gets asked every other day on the forums).